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Industrial Clustering and Technological Innovation in China: New Evidence from the ICT Industry in Shenzhen

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  • Cassandra C Wang
  • George C S Lin
  • Guicai Li

    (School of Urban Planning and Design, Shenzhen Graduate School, Peking University, Shenzhen, China 518055)

Abstract

The relationship between industrial clustering and technological innovation has been a subject of intense enquiry and heated debate. We examine the actual pattern of industrial clustering and technological innovation in China, focusing on the information and communication technology (ICT) industry. With our systematic analysis of the data gathered at the national level we found no significant relationship between spatial agglomeration and economic performance. Our questionnaire survey and personal interviews conducted in Shenzhen—China's leading special economic zone—revealed a peculiar pattern consistent with that at the national level. Although there existed frequent and intensive production linkages among firms in the Shenzhen ICT industrial cluster, the innovative performance of these firms has been rather poor. Most of the ICT manufacturing firms obtained their core technology through internal research and development (R & D) activities rather than through technology transfer or knowledge spillover. There is a lack of interest among firms to seek cooperation and communication based on knowledge, technology, or R & D activities with other firms in the same cluster. The peculiar pattern of clustering and innovation in China suggests that technological innovation may have a divergent regional trajectory more sophisticated than that which has been described in the existing theory of industrial clusters. The study closes with a plea to go beyond a relational turn in economic geography and to take more seriously the roles played by actors and agents within different bounded and grounded institutional and regional contexts.

Suggested Citation

  • Cassandra C Wang & George C S Lin & Guicai Li, 2010. "Industrial Clustering and Technological Innovation in China: New Evidence from the ICT Industry in Shenzhen," Environment and Planning A, , vol. 42(8), pages 1987-2010, August.
    • Handle: RePEc:sae:envira:v:42:y:2010:i:8:p:1987-2010
    DOI: 10.1068/a4356
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    Cited by:

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    2. Y. H. Dennis Wei, 2015. "Network Linkages and Local Embeddedness of Foreign Ventures in China: The Case of Suzhou Municipality," Regional Studies, Taylor & Francis Journals, vol. 49(2), pages 287-299, February.
    3. Aiqi Wu & Cassandra C. Wang & Shengxiao Li, 2015. "Geographical knowledge search, internal R&D intensity and product innovation of clustering firms in Zhejiang, China," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 553-572, August.
    4. Henry Wai-chung Yeung, 2015. "Regional development in the global economy: A dynamic perspective of strategic coupling in global production networks," Regional Science Policy & Practice, Wiley Blackwell, vol. 7(1), pages 1-23, March.
    5. Wang, Cassandra C. & Wu, Aiqi, 2016. "Geographical FDI knowledge spillover and innovation of indigenous firms in China," International Business Review, Elsevier, vol. 25(4), pages 895-906.
    6. Barbieri, Elisa & Di Tommaso, Marco R. & Pollio, Chiara & Rubini, Lauretta, 2020. "Getting the specialization right. Industrialization in Southern China in a sustainable development perspective," World Development, Elsevier, vol. 126(C).

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